I am a CPA in Texas with an MBA from the University of Chicago. I have seen a lot and made many mistakes. Hopefully by now I will have learned something from them. Just as importantly, you may learn something from my mistakes. You can e-mail me by clicking on my "View my complete profile".

Saturday, July 4, 2009

Yves Smith Skewers "The Plan"

I have nothing to add to YS's comments. My favorite quotes from her piece, "Those shortcomings are almost certainly features, not bugs. ... While these are legitimate concerns, the contretemps about the Fed masks more serious issues. ... That suggests that there needs to be not just an institution-based view of the financial markets, but probably also a product-based perspective and increased attention to system dynamics".

Now I present the IA financial reform plan:1. Repeal the Federal Reserve Act.2. See 1.3. See 1.4. Overturn the 1930s "gold clause cases".

5. Make it a felony punishable by up to 10 years in prison to authorize any financial institution holding FDIC insured deposits (FDCI-FI), from holding, trading, issuing shorting, acting as agent for any derivative. Put bank officers in prison? Yes. To hell with the FDIC-FIs.

6. Limit FDIC-FIs from exceeding 1% of total FDIC-FI assets.

7. Make it a felony punishable by up to 10 years in prison, for any FDIC-FI officer from making a loan other than what EC Harwood (ECH) would call a "short-term" self-liquidating loan. ECH wrote about sound bank management in the 1930s! The only blog I know of which follows his work is Sybil's Star, link: http://www.sybilstar.blogspot.com/.

8. Make it a felony punishable by up to 10 years in prison, for an FDIC-FI officer to authorize an FDIC-FI to run an "unmatched book", i.e., have unmatched loan and deposit maturites.

Anonymous:Lincoln would be appalled. Our Republic is "Of Goldman Sachs, by Goldman Sachs and for Goldman Sachs". For this 406,000 Americans died in WWII?I wonder if Schwarzenegger is available once he leaves Sacramento?

The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.